Terms of Trade · Edition 2: The trading pack
Weeks cover
Definition
Stock on hand divided by the rate of sale, expressed as the number of weeks the current stock would last at current sales. Read by line, it shows what will run out and what will not; read as one average, it hides both.
Field note
Weeks cover is the depressing measure of how little you have of the things customers want and how much you have of the things nobody wants.
Board question
Which lines are under four weeks and which are over twenty, and what is the plan for each?
Applied through
Operational Excellence in the Cat’s Whiskers, internally ready before externally funded; the Golden Quarter playbook reads it as one of the seven foundations where a binding constraint can hide before peak.
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